According to a press release dated December 16, 2008, a class - action lawsuit was filed on behalf of individuals and groups that invested capital in Bernard Madoff Investment Securities (BMIS) through Stanley Chais (Chais), or the Brighton Company, one of the many alleged feeder funds by Chais.
Specifically, the lawsuit claims Bernard Madoff and other defendants engaged in a Ponzi scheme, defrauding investors of billions of dollars. The suit alleges defendants fraudulently paid returns to certain investors out of principle received from others. The lawsuit claims the result is $50 billion in liabilities and fraud of unprecedented levels.
HBSS is representing investors and groups that invested capital through Chais or the Brighton Company, one of the many alleged feeder funds that directed investor capital to Bernard Madoff and BMIS. HBSS is representing investors against Chais, Brighton, Madoff and BMIS through this class action while also exploring other remedies for investors.
Chais allegedly managed several investment groups, the monies from which were given to Madoff and BMIS. The lawsuit claims all defendants contributed to the false, misleading, unlawful, unfair and fraudulent acts and practices associated with the Ponzi scheme.
On February 13, 2009, a Notice Of Dismissal Pursuant Rule 41 of the Federal Rules of Civil Procedure was filed with the court.